2nd Quarter 2011 Earnings Conference Call July 28, 28 2011
Participants p Dave Meador, Executive Vice President and CFO Peter Oleksiak, Vice President, Controller & Investor Relations Nick Khouri, Vice President and Treasurer M kR Mark Rolling, lli Di Director t off IInvestor t R…
Overview Second Quarter 2011 Earnings Results Cash Flow and Capital Expenditures y Summary 4
Investment Thesis DTE Energy has a plan it believes will provide 5% - 6% long-term operating EPS growth, an attractive dividend yield and a strong balance sheet Utility growth plan driven by mandated investments Constructive…
Overview DTE Energy 2Q 2011 operating earnings per share share* of 0.65 vs. 0.39 in 2Q 2010; Detroit Edison results driven higher by favorable margin Power & Industrial earnings down following non-repeating earnings in 2010 Gas…
Maintaining 2011 Operating Earnings Guidance Operating Earnings* (millions, except EPS) YTD 2011 2011 Actual Guidance YTD performance supports full year Detroit Edison 197 435 - 445 guidance MichCon 80 110 - 115 Gas Storage &…
Overview Second Quarter 2011 Earnings Results Cash Flow and Capital Expenditures y Summary 8
Second Quarter 2011 Operating Earnings Per Share Share* 0.65 Detroit Edison MichCon** Non-Utility Corporate & Other 0 59 0.59 (0 02) (0.02) 0 18 0.18 (0 10) (0.10) Gas Storage & Unconventional Power & Industrial…
Second Quarter Q 2011 Operating p g Earnings g Variance Operating Earnings* Drivers (millions, except EPS) 2Q 2011 2Q 2010 Change Detroit Edison Detroit Edison 100 87 13 Favorability due to self-implemented rates in 2Q 2011 Mi…
Overview Second Quarter 2011 Earnings Results Cash Flow and Capital Expenditures y Summary 11
Targeted Financial Metrics Leverage* A strong balance sheet continues to be a key Target priority 50% - 52% 53% Leverage and cash flow metrics within 51% 51% targeted ranges, ranges without additional equity in 2011 2009 2010…
YTD 2011 Cash Flow DTE Energy Cash Flow* Flow Drivers (billions) YTD 2011 YTD 2010 Cash C h from f operations ti comparable bl to t Cash From strong levels achieved in 2010 Operations 1.2 1.2 Increased capital spend…
YTD 2011 Capital Expenditures DTE Energy Capital Expenditures Drivers (millions) YTD 2011 YTD 2010 Detroit Edison Detroit Edison primarily driven by Operational 341 355 increased spending on wind projects and higher environmental…
Overview Second Quarter 2011 Earnings Results Cash Flow and Capital Expenditures Summary y 15
Summary YTD earnings are on track; maintaining 2011 operating EPS* guidance of 3.40 - 3.70 Balance sheet and cash flow metrics remain strong g Working towards constructive outcome in Detroit Edison rate case; final order…
Contact Us DTE Energy Investor Relations www.dteenergy.com/investors 313-235-8030 17
Appendix
Gas Storage & Pipeline Growth: Bluestone Pipeline & Gathering Project Bluestone Project Signed longterm agreement with Southwestern Energy with Southwestern Energy Gathering pipeline lateral Infield gathering system Bluestone…
Reduced Emissions Fuel: Potential for Significant V l and Value d Strong St Earnings E i for f 10 Years Y Illustrative Project Returns (millions) High Case Factors that Drive Earnings, NPV Level 400 300 Number of units…
2011 Capital Expenditures & Cash Flow Guidance Cash Flow Summary* y Capital p Expenditures p (billions) (millions) 2011 2011 Guidance Guidance Detroit Edison Cash From Operations 1.9 Operational 720 Capital Spending (1.7)…
DTE Energy Trading Reconciliation of 2Q O Operating ti Earnings* E i * to t Economic E i Net N t Income I (millions) Energy Trading Operating E i Earnings* * 12 (10) (millions, after-tax) Economic net income equals…
DTE Energy Trading Reconciliation of YTD O ti E Operating i * tto E Earnings* i N Economic Nett IIncome (millions) 12 26 Energy Trading Operating E Earnings* i * 14 Economic net income (millions, after-tax) equals economic…
Barnett Shale Operating Metrics Reserves (Bcfe) Acreage Position (000s Acres) 2011 YTD Results 77 13 new wells on-line, 1 in 555 70 489 progress 17 Net 201 16 Production of 2.4 Bcfe Proven Developed 234 Acres 60% increase in…
Reconciliation of 2Q 2011 Reported to O Operating ti Earnings E i Use of Operating Earnings Information DTE Energy management believes that operating earnings provide a more meaningful representation of the companys earnings from…
Reconciliation of YTD June 30, 2011 R Reported t d to t Operating O ti Earnings E i Use of Operating Earnings Information DTE Energy management believes that operating earnings provide a more meaningful representation of the…
Reconciliation of 2Q 2010 Reported to O Operating ti Earnings E i Use of Operating Earnings Information DTE Energy management believes that operating earnings provide a more meaningful representation of the companys earnings from…
Reconciliation of YTD June 30, 2010 R Reported t d to t Operating O ti Earnings E i Use of Operating Earnings Information DTE Energy management believes that operating earnings provide a more meaningful representation of the…
Reconciliation of Full Year 2011 Reported to O Operating ti Earnings E i Use of Operating Earnings Information DTE Energy management believes that operating earnings provide a more meaningful representation of the companys earnings…
Loading...
